The $20 billion went to almost nothing in Bear Sterns - the subprime losses in the hedge funds on borrowed money is just tip of the iceberg
Alan Hershey
Jul. 18, 2007

The investors finally came to understand what happened to the two hedge funds that borrowed money and recklessly invested in subprime mortgages under the umbrella of a professional investment banker.

one fund had lost all its value and the other had about nine cents remaining for every dollar invested following bad bets on the US subprime mortgage market.

One investor described it as a wreckless driving case where a so called professional drove at 200 miles an hour in a congested market place and crashed all over the place.

The problem is that this is just tip of the iceberg. The other financial institutions are less tranparent than Bear Sterns and are keeping quiet. The funds were heavily exposed to the troubled subprime mortgage market through complex debt securities known as collateralised debt obligations.

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The $20 billion went to almost nothing in Bear Sterns - the subprime losses in the hedge funds on borrowed money is just tip of the iceberg
Alan Hershey
The investors finally came to understand what happened to the two hedge funds that borrowed money and recklessly invested in subprime mortgages under the umbrella of a professional investment banker.
READ MORE>>

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